Oligopolies Can End Up Looking Like Competitive Firms If the Number

question 119

True/False

Oligopolies can end up looking like competitive firms if the number of firms is large and they do not cooperate.

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Definitions:

Return On Investment

A measure of the profitability and efficiency of an investment, calculated as net profit divided by the cost of the investment.

Invested Assets

Assets that have been purchased or acquired for the purpose of generating income or profit, not for immediate resale.

Minimum Return

The lowest acceptable rate of return on an investment that a manager or investor is willing to accept.

Residual Income

Residual income is the amount of net income generated in excess of the minimum rate of return. It's often used to assess the performance of business units.